SUBSTANTIAL INCREASE IN ALLIED HEALTH FUNDING FOR VETERANS THROUGH DVA New fee structure heralds largest increase in provider fees in over 20 years

With
Hon Matt Keogh MP
Minister for Veterans’ Affairs &
Minister for Defence Personnel
Australian Government

Scot MacDonald
General Manager, Policy and Advocacy
Exercise & Sports Science Australia (ESSA)

Katie Lyndon,
Chief Executive Officer
Exercise & Sports Science Australia (ESSA)

Dr Rik Dawson, National President
Australian Physiotherapy Association (APA)

Diana Poole, Chair
The Australian Orthotic Prosthetic Association (AOPA)

SEGMENT
Filmed in Launceston, Canberra, Melbourne & Sydney | May 2026

The Australian Federal 2026–27 Budget included several significant announcements relating to allied health services for veterans, largely tied to the Government’s response to recommendations from the Royal Commission into Defence and Veteran Suicide.

A key measure was a substantial increase in funding for allied health services delivered through the Department of Veterans’ Affairs (DVA). The Government committed $169.7 million over five years, along with ongoing funding, to increase fees paid to allied health providers treating veterans. This was described as the largest increase to veteran allied health fees in more than two decades and applies across a broad range of professions including physiotherapy, psychology, occupational therapy, exercise physiology, podiatry, speech pathology, dietetics and social work.

The Budget also announced reforms aimed at reducing administrative burden for veterans and clinicians. From July 2027, the existing 12-session treatment cycle arrangements will be removed, meaning veterans will no longer need repeated GP referrals after each block of treatment in order to continue receiving allied health support.

Another major change was the introduction of a $5,000 annual cap on allied health spending for Veteran Card holders from 1 July 2027.

The Budget measures were positioned as part of broader reforms to improve veteran wellbeing, strengthen access to healthcare services, and modernise the delivery of care through the veterans’ health system.

The announcements also included changes to fee structures and billing practices of providers delivering care to veterans through the Department of Veterans’ Affairs (DVA) system.

The most immediate impact will come from the increase in DVA reimbursement rates across a range of allied health disciplines. For many providers, the updated fee schedule is likely to narrow the gap between DVA-funded appointments and standard private consultation fees. In recent years, some clinicians and practices had reported that DVA rates were comparatively low relative to operating costs, wage growth and rising demand for services. The increased funding may therefore improve the financial sustainability of treating veteran patients and reduce the need for practices to limit DVA bookings due to lower margins.

Australian Health Journal spoke with the Minister’s office, and a number of allied health industry groups on the announcements.

Source: Written by publisher